The impact of product variety on closed-loop supply chains: An automotive perspective

Remanufacturing is not new to the automotive industry, neither is it to the academic debate of product take-back. However, there is limited empirical research on business aspects of closing the loop in the automotive sector. Since academic research has largely focused on theoretical models and problem solving, the underlying research has taken a businessoriented perspective on remanufacturing in the automotive sector. The article is based on extensive case study research with regard to car engine and electronic component remanufacturing. It identifies issues within the management of these recovery processes. Thus, the research provides an empirical account for further quantitative work in the area and complements as well as extends existing theoretical research. Since the management of remanufacturing operations is significantly different from managing ‘conventional’ manufacturing, the underlying research demonstrates these differences and identifies sources that inhibit the creation of successful produc t recovery in the automotive sector. A particular emphasis will be put on the impacts of mass 3 customisation on the automotive remanufacturing sector. Mass customisation is characterised by the manufacturing of individualised products for individual customers at mass prices. However, this strategy contains two conflicting aims. On the one hand, designers create product platforms, which are applied to facilitate the manufacturing process and aim at broadening the application of the product. On the other hand, there is the need for product differentiation in order to address individual customers. The article shows how remanufacturing needs to address these two contrary aspects